Google must open Play Store to third-party developers on Android

SAN FRANCISCO (CN) — A federal judge handed a major victory to Epic Games on Monday morning in the form of a permanent injunction that will force Google to open up its Google Play Store on Android devices to third-party app stores and distribute those third-party app stores through Google Play.

The injunction follows an December 2023 win for Epic Games against Google after a two-month jury trial that found Google violated antitrust laws.

Epic Games, maker of hit games like Fortnite, had accused Google of locking up the app store market on Android through exclusive deals with smartphone makers, and scaring users away from sideloading apps through the web by using security warnings telling users the risk of sideloading.

“These harms are ongoing and cannot be made right simply by Google writing Epic a large check. Considering the balance of hardships between Epic and Google, a remedy in equity is warranted, and the public interest, which is perfectly aligned with the restoration of free and unfettered competition, would be well served by a permanent injunction,” U.S. District Judge James Donato wrote in his 17-page order.

Donato, a Barack Obama appointee, determined that for three years starting Nov 1., Google will be prohibited, in the United States, from paying companies to launch apps on Google Play first or paying companies not to compete with Google Play.

Epic Games had asked for the remedy to cover six years instead of three.

“The provisions are designed to level the playing field for the entry and growth of rivals, without burdening Google excessively,” Donato wrote. “As competition comes into play and the network effects that Google Play unfairly enjoys are abated, Google should not be unduly constrained as a competitor.”

Donato wrote that Google will still have control over safety and security on the Google Play store, as long as those measures are “strictly necessary and narrowly tailored,” and are comparable to its current security measures. Google will be able to charge a fee for this policing. Epic had argued in briefs and hearings that Google should not be able to deter any third-party app store through policing measures.

As part of the injunction, Google will also be prohibited from sharing revenue or paying fees to companies that choose not to compete with Google’s Play Store on Android platforms.

The injunction will also prevent Google from requiring app developers to use Google Play Billing, and also prohibits Google from disallowing app developers to tell users about cheaper deals on their app stores or websites for digital goods.

Google will also now have to carry third-party app stores on Google Play and permit those competing app stores to have access to Google Play’s catalog of apps unless they opt out.

The decision could be a boon for developers as Google currently takes between 15% and 30% of total sales for high-grossing apps. The new restrictions will allow developers to keep more of the revenue by bypassing Google’s fees.

With Nov. 1 just three weeks away, it remains to be seen whether Google will immediately have to follow Donato’s order. Google promised to appeal the jury’s unanimous verdict, and said in a blog post Monday that it plans to seek an immediate stay while that appeal plays out.

Epic Games sued Apple over similar antitrust concerns regarding its app store in 2020 but mostly lost that case. Earlier this year, the U.S. Supreme Court declined to hear Epic’s appeal of the federal court’s decision.

Last week, Epic Games filed a similar lawsuit against Samsung and Google. In that suit, Epic claimed that Samsung’s new “Auto Blocker” feature makes it harder for users to install software from their competitors’ app stores. Donato will hear also that case as it was determined to be officially related to Monday’s Google injunction.

Epic Games and Google did not immediately respond to requests for comment.